Three consortia compete for Danamon<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) shortlisted on
\nFriday three bidders who are competing for a majority stake in
\nBank Danamon, with the agency targeting to name the winning
\nbidder in May.<\/p>\n
The three bidders are the Asia Financial Indonesia consortium,
\nthe Bank Artha Graha consortium and the Bhakti Capital Indonesia
\nconsortium, IBRA chairman Syafruddin Temmenggung said.<\/p>\n
Syafruddin added that the last two consortia were comprised of
\nlocal bidders, while the Asia Financial Indonesia consortium
\nconsisted of Temasek Holdings of Singapore and Deutsche Bank.<\/p>\n
IBRA plans to sell a 51 percent stake in the country's second
\nlargest private bank as part of its efforts to restructure the
\nbanking industry, and to raise funds to help finance the state
\nbudget deficit.<\/p>\n
The divestment of government shares in private banks is aimed
\nat luring credible investors, who could, in turn, help improve
\nthe banks' performance and revive the banking sector's
\nintermediary role.<\/p>\n
In addition, revenues from the share sales are intended to
\nhelp finance the 2002 state budget deficit, projected at Rp 34.4
\ntrillion, or 1.7 percent of the country's gross domestic product.<\/p>\n
IBRA gained a 99.4 percent stake in Bank Danamon in return for
\nthe Rp 47 trillion it injected into the bank to bail it out in
\nthe wake of the 1997-98 banking crisis. The public holds the
\nremaining shares.<\/p>\n
The three bidders will have about a month to conduct due
\ndiligence on the bank before making their final bids, expected by
\nthe end of April.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/three-consortia-compete-for-danamon-1447893297",
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"sponsor": "Okusi Associates",
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